36Kr learned that on the evening of April 23, Tencent Music Entertainment Group (TME.US) held a long audio strategy conference, at which it officially launched the long audio APP "Kuwo Changting".
According to Xiao Yi, vice president of Kuwo Music, the “Kuwo Changting” App invites some celebrities, voice actors, radio drama anchors, etc. to participate in the production of audio content, which currently covers audio novels, storytelling crosstalk, story children’s songs, Audio content in 19 categories including emotional variety shows.
Yuewen Group is a partner of the audio content of "Kuwo Chang Listening". Kuwo said that the radio drama development plans for many super IPs under China Literature have been launched, including "Tomb Raiders Notes", "Lord of Mysteries", "White Night Chase", "Fighting Swordsman in the Snow", "Zhenhun Street", etc. Some of the works are Exclusively developed radio drama for the first time.
The online audio that Kuwo Music is interested in this time is a rapidly growing market with low penetration rate. iResearch previously estimated that the number of online audio users in China will grow at an average annual compound growth rate of 19% from 2018 to 2023. According to statistics from QuestMobile, the total number of monthly active users of China's online audio APPs in June 2019 was 110 million, accounting for approximately 9.7% of the total number of monthly active users of mobile Internet in the country, and the penetration rate is significantly lower than that of online music APPs and online K Song APP.
Picture source GF Securities
As for the "content provider" Yuewen, cooperation with Kuwo Music also provides an additional way to monetize the content IP on its platform. The relevant person in charge of China Literature said at the meeting that China Literature’s content IP has mostly been adapted into games, movies, TV and other forms. This cooperation with Kuwo has added the “audio” business, which is equivalent to completing the company’s IP Pan-entertainment layout.
The launch of Tencent Music’s long audio platform may become a new variable affecting the pattern of the online audio industry. As of December 31, 2019, Tencent Music had more than 800 million monthly active users. With a large amount of user traffic, coupled with the exclusive authorization of the super IP audio adaptation of China Literature (also owned by Tencent), Tencent Music’s increase in the field of long audio will increase the number of existing products such as Ximalaya, Dragonfly FM, Lazy Listening Book, etc. Competitive pressures from online audio platforms.
As of press time, Tencent Music reported US$11.145 per share, up 0.27%, with a market value of US$18.696 billion.